Stout performed a fair value analysis of Crinetics Pharmaceuticals, Inc’s out-license agreement with an Asian public company for its lead asset in the territory of Japan. We worked collaboratively with the company’s auditors to navigate the complexities of the out-license and the relevant financial reporting guidance.

After completion of this first engagement, Stout was hired to assist the company with calculating its incremental borrowing rate (IBR) for ASC 842 adoption related to Crinetics’ move into a new corporate headquarters. Given the size of the facility and length of the headquarters’ lease, the ASC 842 operating lease liability was a significant balance sheet liability for Crinetics and needed to withstand the scrutiny of all reviewing parties.